Tuesday, July 20, 2010

Panel should be independent

Panel should be independent

Better idea: Privatize the crowns and allow them to set their own rates.

I mean, not for nothing, but crown utilities aren't THERE to provide the "lowest bundle of utilities in Canada". They aren't there to minimize debt in order to make the government look good, nor are they there to maximize a "dividend" payment to general revenue in order to make the government of the day look good as well.

No. The crown corporations are there to be run as normal businesses that just happen to be owned by the government and provide services to all residents of the province. There shouldn't BE a rate review panel because crowns should be expected to act like normal businesses and price their product in order to ensure proper maintenance of the infrastructure and a normal return on investment.

In SaskPower's case, the infrastructure deficit is so large (as evidenced by the fact that the government didn't take any dividend in order to allow SaskPower to replace and maintain with that money) that the rate review panel shouldn't be making any adjustments to the rate anyways.

So back to the original point. Privatize the Crowns and do away with the rate review panel. I would be the best thing this government ever did.

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